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Bill C-32

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Consequential Amendments

1997, c. 26

Budget Implementation Act, 1997

1998, c. 21, ss. 65 to 67, 69, 70(2), 71(2); 1999, c. 26, ss. 31 to 34

30. Parts III and IV of the Budget Implementation Act, 1997 are repealed.

1998, c. 21

Budget Implementation Act, 1998

31. Part 4 of the Budget Implementation Act, 1998 is repealed.

1999, c. 26

Budget Implementation Act, 1999

32. Division 1 of Part 5 of the Budget Implementation Act, 1999 is repealed.

R. S., c. E-15

Excise Tax Act

33. Paragraph 295(5)(d) of the Excise Tax Act is amended by adding the following after subparagraph (iv):

      (iv.1) to a person authorized by the council of a band listed in the schedule to the Budget Implementation Act, 2000 solely for the purposes of the formulation, evaluation or initial implementation of fiscal policy relating to a tax that the council of the band may impose under a by-law made under subsection 24(1) of that Act,

Conditional Amendment

Bill C-24

34. If Bill C-24, introduced in the 2nd Session of the 36th Parliament and entitled the Sales Tax and Excise Tax Amendments Act, 1999 (the ``other Act''), is assented to and Part 4 of this Act comes into force before, or on the same day as, the day of that assent, then

    (a) for the period that begins on June 18, 1998 and ends on the day before the day on which that Part comes into force, the amendments to the Budget Implementation Act, 1997 enacted by sections 149 to 151 of the other Act apply as though Parts III and IV of the Budget Implementation Act, 1997 had not been repealed by section 30 of this Act;

    (b) for the period that begins on June 18, 1998 and ends on the day before the day on which that Part comes into force, the amendments to the Budget Implementation Act, 1998 enacted by sections 152 and 153 of the other Act apply as though Part 4 of the Budget Implementation Act, 1998 had not been repealed by section 31 of this Act; and

    (c) for the period that begins on June 17, 1999 and ends on the day before the day on which that Part comes into force, the amendment to the Budget Implementation Act, 1999 enacted by section 154 of the other Act applies as though Division 1 of Part 5 of the Budget Implementation Act, 1999 had not been repealed by section 32 of this Act.

PART 5

R. S., c. E-15

EXCISE TAX ACT

1997, c. 10, s. 55(2)

35. The portion of subsection 245(2) of the Excise Tax Act before paragraph (a) is replaced by the following:

Reporting period of registrant

(2) Subject to subsection 248(3) and sections 251, 265 to 267 and 322.1, the reporting period of a registrant at a particular time in a fiscal year of the registrant is

36. The Act is amended by adding the following after section 322:

Definitions

322.1 (1) The definitions in this subsection apply in this section.

``assessed period''
« période visée »

``assessed period'' of a person, in respect of an authorization under subsection (2) relating to a particular reporting period of the person, means

      (a) if the hearing date is before the last day of the particular reporting period, the period beginning on the first day of the particular reporting period and ending on the assessment date; and

      (b) in any other case, the particular reporting period.

``assessment date''
« date de cotisation »

``assessment date'', in respect of an authorization under subsection (2), means the day immediately before the hearing date.

``hearing date''
« date d'audience »

``hearing date'', in respect of an authorization under subsection (2), means the day on which a judge hears the application for the authorization.

``judge''
« juge »

``judge'' means a judge of a superior court of a province or a judge of the Federal Court.

Authoriza-
tion to assess and take collection action

(2) If, on ex parte application by the Minister relating to a particular reporting period of a person, a judge is satisfied that there are reasonable grounds to believe that the net tax for the period, determined without reference to this section, would be a positive amount and that the collection of all or any part of that net tax would be jeopardized by a delay in its collection, the judge shall, on such terms as the judge considers reasonable in the circumstances, authorize the Minister to, without delay,

    (a) assess the net tax for the assessed period, determined in accordance with subsection (3); and

    (b) take any of the actions described in sections 316 to 321 in respect of that amount.

Effect of authorization

(3) For the purposes of this Part, where an authorization is granted under subsection (2) in respect of an application relating to a particular reporting period of a person,

    (a) if the hearing date is before the last day of the particular period,

      (i) the following periods are each deemed to be a separate reporting period of the person:

        (A) the assessed period, and

        (B) the period beginning on the hearing date and ending

          (I) where the particular period is a fiscal year, on the last day of the fiscal quarter of the person that includes the hearing date, and

          (II) in any other case, on the last day of the particular period, and

      (ii) where the particular period is a fiscal year,

        (A) the person is deemed to have made an election under section 247 to have reporting periods that are fiscal quarters of the person that takes effect at the beginning of the first fiscal quarter of the person beginning after the hearing date, and

        (B) section 237 applies in respect of the assessed period as if that period were a reporting period determined under subsection 248(3);

    (b) the day on or before which the person is required to file a return under Division V for the assessed period is deemed to be the hearing date;

    (c) the net tax for the assessed period is deemed to be equal to the amount that would be the net tax for the period if, on the assessment date, the person were to claim in a return under Division V filed for the period all amounts, each of which is an amount that the person would be entitled on that day to claim as an input tax credit for the period or as a deduction in determining the net tax for the period;

    (d) the net tax for the assessed period is deemed to have become due to the Receiver General on the hearing date;

    (e) if, in assessing the net tax for the assessed period, the Minister takes into account an amount that the person would be entitled to claim as an input tax credit or a deduction in determining the net tax, the person is deemed to have claimed the amount in a return filed under Division V for the assessed period; and

    (f) sections 280 and 284 apply as if the net tax for the assessed period were not required to be remitted, and the return for that period were not required to be filed, until the last day of the period described in subsection (9).

Affidavits

(4) Statements contained in an affidavit filed in the context of an application under this section may be based on belief in which case it must include the grounds for that belief.

Service of authorization and notice of assessment

(5) An authorization granted under subsection (2) in respect of a person shall be served by the Minister on the person within 72 hours after it is granted, except if the judge orders the authorization to be served at some other time specified in the authorization, and a notice of assessment for the assessed period shall be served on the person together with the authorization.

How service effected

(6) For the purpose of subsection (5), service on a person shall be effected by personal service on the person or service in accordance with the directions of a judge.

Application to judge for direction

(7) If service cannot reasonably be effected as and when required under this section, the Minister may, as soon as practicable, apply to a judge for further direction.

Review of authorization

(8) If a judge of a court has granted an authorization under subsection (2) in respect of a person, the person may, on six clear days notice to the Deputy Attorney General of Canada, apply to a judge of the court to review the authorization.

Limitation period for review application

(9) An application by a person under subsection (8) to review an authorization shall be made

    (a) within 30 days after the day on which the authorization was served on the person in accordance with this section; or

    (b) within such further time as a judge may allow, on being satisfied that the application was made as soon as practicable.

Hearing in camera

(10) An application by a person under subsection (8) may, on the application of the person, be heard in private, if the person establishes to the satisfaction of the judge that the circumstances of the case justify proceedings heard in private.

Disposition of application

(11) On an application under subsection (8), the judge shall determine the question summarily and may confirm, vary or set aside the authorization and make such other order as the judge considers appropriate.

Effect of setting aside authorization

(12) If an authorization is set aside under subsection (11), subsection (3) does not apply in respect of the authorization and any assessment made as a result of the authorization is deemed to be void.

Directions

(13) If any question arises as to the course to be followed in connection with anything done or being done under this section and there is no relevant direction in this section, a judge may give such direction with regard to the course to be followed as, in the opinion of the judge, is appropriate.

No appeal from review order

(14) No appeal lies from an order of a judge made under subsection (11).

PART 6

R.S., c. 1 (5th Supp.)

INCOME TAX ACT

37. (1) The formula in subsection 117.1(1) of the Income Tax Act is replaced by the following:

(A/B) - 1

(2) Section 117.1 of the Act is amended by adding the following after subsection (1):

Adjustment of certain amounts

(1.1) Notwithstanding any other provision of this section, for the purpose of making the adjustment provided under subsection (1) for the 2000 taxation year, the amounts used for the 1999 taxation year

    (a) in respect of the amounts of $6,000, $5,000 and $500 referred to in paragraphs (a), (b) and (c) of the description of B in subsection 118(1) and the amount of $625 referred to in subparagraph 180.2(4)(a)(ii) are deemed to be $7,131, $6,055, $606 and $665, respectively; and

    (b) in respect of the amounts of $6,456 and $4,103 referred to in paragraph (d) of the description of B in subsection 118(1) are deemed to be $7,131 and $4,778, respectively.

(3) Paragraph 117.1(4)(a) of the Act is replaced by the following:

    (a) aggregating the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, adjusted in such manner as is prescribed, for each month in that period;

(4) Subsections (1) and (3) apply to the 2000 and subsequent taxation years.

(5) Subsection (2) applies to the 2000 taxation year.

38. (1) Subclause 122.5(3)(e)(ii)(B)(II) of the Act is replaced by the following:

          (II) $6,546

(2) Subparagraph 122.5(3)(f)(ii) of the Act is replaced by the following:

      (ii) $26,284,

(3) Section 122.5 of the Act is amended by adding the following after subsection (3):

Adjustment of certain amounts

(3.1) For the purpose of subsection (3) and notwithstanding subsection 117.1(1), the amounts, in respect of the amounts of $190, $100 and $105 referred to in subsection (3), used for the purpose of determining amounts deemed to be paid during months specified under subsection (4)

    (a) for the 1999 taxation year are deemed to be $205, $107 and $107, respectively;

    (b) for the 2000 taxation year shall be equal to the greater of the amounts referred to in paragraph (a) and the amounts that would otherwise be determined to be paid during those months if this Act were read without reference to this subsection; and

    (c) for the 2001 and subsequent taxation years shall be computed without reference to paragraphs (a) and (b).

(4) Subsections (1) to (3) apply to the 1999 and subsequent taxation years.

39. (1) Paragraph (b) of the description of B in subsection 122.51(2) of the Act is replaced by the following:

    (b) the sum of

      (i) the greatest total that may be determined in respect of an individual for the year under paragraph (a) of the description of B in subsection 118(1), and

      (ii) the dollar amount used for the year in computing the amount that may be claimed under subsection 118.3(1) in respect of an individual who has attained the age of 18 years before the end of the year.

(2) Subsection (1) applies to the 2000 and subsequent taxation years.

40. (1) Paragraph (a) of the description of A in subsection 122.61(1) of the Act is replaced by the following:

    (a) the product obtained by multiplying $1,090 by the number of qualified dependants in respect of whom the person was an eligible individual at the beginning of the month,

(2) The description of B in subsection 122.61(1) of the Act is replaced by the following:

B is 5% (or where the person is an eligible individual in respect of only one qualified dependant at the beginning of the month, 2 1/2%) of the amount, if any, by which

      (a) the person's adjusted income for the year

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